A renewable power stock has jumped over 70% year-to-date (YTD), yet Axis Capital, a wholly owned subsidiary of Axis Bank, believes the stock has the potential to rise further from the current levels. The stock we are discussing is ACME Solar Holdings. ACME Solar Holdings is an integrated renewable energy company with a diversified contracted portfolio, spanning solar, wind, storage, FDRE and hybrid solutions.
As per the BSE data, the stock has jumped 72% year-to-date, while on a shorter timeframe of six months, it has climbed 43%. It hit a 52-week high of ₹476.40 on 22 September after hitting a 52-week low of ₹195.65 on 27 January.
The stock declined 2.6% in intraday trade on Thursday, 15 October. On a monthly scale, it is down 7% so far in October after a 9% jump in September and an 11% rise in August.
In a 15 October report, Axis Capital initiated coverage on the stock with a buy recommendation, pegging the target price of ₹550, implying a 31% upside potential, citing the company's transition into a renewable energy (RE) project developer.
"Acme Solar Holdings is transitioning from a plain vanilla solar IPP (independent power producer) to a complex RE project developer and a leading BESS (battery energy storage system) adopter," Axis noted.